Letting house go

[djt]

Any expertise on how banks or credit unions can legally report a surrender after discharge. I have never missed a payment or been late before or after my discharge in Jan 06. I will soon land a new job in a new town. My house will not sell soon as it needs a little work, and I will be gone in 3 months or so. Since my house was included in bankruptcy, my only concern is how a repossession/foreclosure will look on my credit report.

Can they or do they report IIB and foreclosure at the same time? I have seen both on this forum.

Thanks in advance.

[Minnymouth]

If you did not sign a reaffirm agreement with the bank or mortgage company then it should say "included in bankrutpcy" or "discharged in bankruptcy" on your credit report.

If so you can safely call the bank, tell them you are surrendering the property and make arrangements for them to take possession of it...... then you will no longer have any obligation to the debt owed them.

If you did "sign" a reaffirm, then you may owe a balance to them after the home is sold, and they will have to do a foreclosure also to get possession of the home......

[djt]

Thanks for the advice. and no I didn't sign a reaffirmation on the house nor on the 2 cars that we have financed through them. So if they were included in Bk the foreclosure and/or repossession will not be reported? I understand that I am not under obligation to pay the debt, but as we try to find other housing and improve our credit scores i am worried about the double whammy bk and fc.

Thanks again

[Minnymouth]

I don't beleive the "foreclosure" will show on your bk since it is "discharged".... that would be reporting incorrectly......

Keep and eye on your credit report and dispute it if it should happen to pop up as foreclosure....

Had you reaffirmed, then then yes it would say foreclosure on the report....

Keep us posted